Amazon begins sales tax collection in Texas

Described as a big win for advocates of a level retail playing field, Amazon.com began collecting sales tax in Texas July 1.

“A true free market is devoid of government preferences and special treatment,” said Sandy Kennedy, president of the Retail Industry Leaders Association (RILA). “Texas has made a powerful statement that it's time to end special treatment for online retailers and close the sales tax loophole that gives companies like Amazon an artificial leg up on Main Street retailers.”

Eight states have followed Texas’ lead and passed legislation or taken administrative action in the past year to help level the retail playing field by requiring online retailers like Amazon to collect sales tax.California and Pennsylvania are up next, with both states requiring Amazon to collect sales tax in September.New Jersey Governor Chris Christie and Virginia Governor Bob McDonnell recently struck agreements with Amazon in their respective states, with Amazon beginning sales tax collection next year.